This is my simple equation for a path to riches:
Investing in Real Estate = Riches
The reasons for this are simple. When you buy a house, you can rent it out for a nice monthly income. And when you decide you no longer want the house, you can sell it for a higher price than what you bought it for, which results in a nice profit.
So investing in real estate = monthly income + selling price – buying price
Not only is investing in real estate financially sound, but it is also relatively stress free compared to investing in stock markets, which would consume more of your attention and time.
The most enjoyable part of investing in real estate is when you go looking for houses. Like this one?
This is a 5 bedroom villa in Dubai which is on sale for 1,000,000 (I’m assuming, US$) at Athand 24 Real Estate.
Dubai is a good location to invest in and there’s a good article in the Real Estate Forum that lists the reasons why you should invest in Dubai. Some of the reasons are the low crime rates, high international standards for business, tourism and lifestyle, freedom of living, no income taxes, and no restrictions on capital repatriation. Of course there’s always a risk factor when purchasing a house. Earthquakes and fires for instance happen on a daily basis. So we can further expand our equation like this:
investing in real estate = (monthly income + selling price – buying price) * (r)
where r = the risk factor = 0 for disasters and 1 for no disasters
But natural disasters rarely damage houses, so your chances of making a profit are still very high compared to your chances of losing everything. So it’s no wonder that Donald Trump loves Real Estate, as do all other rich men and women do.